A STUDY ON “EFFECTIVENESS OF WORKERS PARTICIPATION IN

MANAGEMENT” WITH SPECIAL REFERENCE TO KLF NIRMAL

INDUSTRIES PVT.LTD. IRINJALAKUDA

A project report submitted in partial fulfilment of the requirements for the

award of the degree of

MASTER OF BUSIESS ADMINISTRATION

Of

MAHATMA GANDHI UNIVERSITY, KOTTAYAM, KERALA

Submitted by
ARDRA T.B
Reg No: 190031000948

Under the guidance of

Dr. GIJU PAUL
Assistant Professor

JULY 2021

DC School of Management and Technology ,Pullikanam, Vagamon,

Idukki,685503. Tel: 04869-248322, 248323

1
 DECLARATION

I hereby declare that the project work entitled “A Study on Effectiveness of Workers
Participation in Management with special reference to KLF NIRMAL Pvt .Ltd
Iringalakuda” submitted to Mahatma Gandhi University, Kottayam, Kerala, is a record
of the original work done by me and no part of it has been submitted earlier for the award of
any Degree, Post-Gradation or Diploma of any other University or institution.

Place: Vagamon Name: ARDRA T.B

Date: Reg.No: 190031000948

2
 ACKNOWLEDGEMENT

I express my sincere gratitude to the Almighty God, Parents and my Teachers for their
blessings and support.

I owe my deep sense of gratitude to Dr. SREEKANTH SV, Principal, DC School of

Management and Technology,Vagamon, Idukki for providing all facilities to carry out the
project report.

This work has been complete under the guidance of DR. GIJU PAUL, Associate Professor,
and Faculty Guide, who kept on motivating me to put in my best effort. I express my heartfelt
gratitude for his valuable guidance throughout the successful completion of the project report.

I express my gratitude to Professor DR. DEEPTHI SANKAR, Batch Coordinator, and all
other faculty members of DC School of Management and Technology, Vagamon ,Idukki for
the facilities given to me for the successful completion of this Project.

At this occasion I wish to express my hearty gratitude to all my friends and others who
helped me one way or the other through the course of this research work.

3
 D C School of Management and
Technology

One School Avenue

Pullikkanam PO, Vagamon,
Idukki - 685 503, Kerala, India
Phone:( 91-4869) 202110
Fax: (91-481) 2564758
Web:www.dcschool.net
E-mail: [email protected]

Date 31/07/2021

CERTIFICATE

This is to certify that the project report entitled “A STUDY ON EFFECTIVENESS OF

WORKERS PARTICIPATION IN MANAGEMENT WITH SPECIAL REFERENCE
TO KLF NIRMAL INDUSTRIES PVT. LTD IRINJALAKUDA”,is a bona fide record
of the work done by Ardra T B (Reg No 190031000948 ) under my guidance in partial
fulfillment of the requirement for the award of Degree of Master of Busines Administration
of Mahatma Gandhi University, Kottayam, Kerala and to endorse that this work has not
been submitted by him/her for the award of any other degree, diploma or title of recognition
earlier.

Faculty Guide
This report has been accepted and forwarded to the University for evaluation based on the
recommendation of the Faculy Guide.

Principal

External Examiner 1 External Examiner 2

Signature Signature

4
5
 TABLE OF CONTENTS
Sl.N CHAPTERS Page. No
o
01 Introduction

1.1 Background of the study 11-14

1.2 Statement of the problem
1.3 Relevance & Scope of the study
1.4 Objectives of the study

02 Industry and company profile

2.1 Business process of the industry

2.2 Market Demand & Supply- Contribution to GDP- Revenue
Generation 19-40
2.3 Level and Type of Competition-Firms Operating in the Industry
2.4 Pricing strategies in the Industry
2.5 Prospects and Challenges in the Industry
2.6 Key Drivers of the Industry
2.7 Company profile

03 Review of Literature

3.1 Brief Theoretical Construct related to the problem 42-45

3.2 An Overview of earlier studies
3.3 Uniqueness of Research Study

04 Methodology of the study

4.1 Research Approach and Design

4.2 Sources of Online Data 48-54
4.3 Sample Design
4.4 Data Analysis Tools
4.5 Report Structure
4.6 Limitations of the Study

05 Data Analysis , Interpretation & Inference 56-75

06 Findings of the study & Suggestions 77-79
07 Conclusions 81
Bibliography 82-88
Annexures

6
 LIST OF FIGURES
Figure no TITLE Page no

5.1 Figure showing working years of respondents 56

5.2 Figure showing there is workers participation in management 57

Figure showing which means workers participation is adopted in the

5.3
organization 58

5.4 Figure showing management conduct meeting with the employees 59

5.5 Figure showing conflict between employees & management 60

5.6 Figure showing reasons for the occurrence of the conflict 61

5.7 Figure showing opportunity to give suggestion to the management 62

5.8 Figure showing attitude of management when the employees give

suggestions 63

5.9 Figure showing monetary benefits that employees getting 64

5.10 Figure showing employees involved in decision making process 65

5.11 Figure showing management reduce employee resistance to change 66

5.12 Figure showing workers participation in management enhance the

productivity 67

5.13 Figure showing the opinion regarding the rules and regulations of the
organization 68

5.14 Figure showing impact of workers participation in management 69

5.15 Figure showing the improvement of the company by workers

participation in management 70

5.16 Figure showing level of relations that employees have with superiors 71

Figure showing rating of workers participation in management in the

5.17 72
organization

Figure showing opinion about employee participation within the

5.18 73
organization

7
5.19 Figure showing feeling of the workers in the organization 74

Figure showing workers participation in management is able to develop

5.20 75
the high result

8
 LIST OF TABLES
Table no TITLE Page no

5.1 Table showing working years of respondents 56

5.2 Table showing there is workers participation in management 57

Table showing which means workers participation is adopted in the

5.3
organization 58

5.4 Table showing management conduct meeting with the employees 59

5.5 Table showing conflict between employees & management 60

5.6 Table showing reasons for the occurrence of the conflict 61

5.7 Table showing opportunity to give suggestion to the management 62

5.8 Table showing attitude of management when the employees give

suggestions 63

5.9 Table showing monetary benefits that employees getting 64

5.10 Table showing employees involved in decision making process 65

5.11 Table showing management reduce employee resistance to change 66

5.12 Table showing workers participation in management enhance the

productivity 67

5.13 Table showing the opinion regarding the rules and regulations of the
organization 68

5.14 Table showing impact of workers participation in management 69

5.15 Table showing the improvement of the company by workers

participation in management 70

5.16 Table showing level of relations that employees have with superiors 71

5.17 Table showing rating of workers participation in management in the

organization 72

Table showing opinion about employee participation within the

5.18 organization
73

5.19 Table showing feeling of the workers in the organization 74

9
5.20 Table showing workers participation in management is able to develop
the high result 75

10
 CHAPTER 1

INTRODUCTION

11
1.1 BACKGROUND OF THE STUDY

Workers participation in management indicates involvement of workers in managerial

decision making process of the organization. Workers participate in decision making through
their group representative. The nature and extent of workers participation in management
depends upon the nature of the organization, nature of different problems that requires
settlement. Everything you need to know about workers’ participation in management.
Workers participation in management indicates involvement of workers in managerial
decision making process of the organization. Workers participate in decision making through
their group representative. The nature and extent of workers participation in management
depends upon the nature of the organization, nature of different problems that requires
settlement. Worker’s participation in management is based on mutual trust, information
sharing and mutual problem solving.

The concept of participation is expressed by different experts in

different ways. The term participation is also variously understood by involved parties. The
parties involved in the participation are workers, management and government. For
management it is a joint consultation over the particular issue prior to decision making, for
workers it means co-determination, while for government it is an association of labour with
management without the final authority or responsibility in decision making. The concept of
workers participation was introduced with the interest to bring forward or involve the non-
managerial employees in their related issued so that their opposition can be avoided
cooperation. This is the new concept in industrial relations to bring industrial democracy to
the industry. It can be said that the arrangement which is designed to involve employees in
the important decision making within the workplace at different levels.

It is known by different names in different countries. Workers’

participation is also known as – ‘labour participation’ or ’employee participation’ in
management. In Germany it is known as co-determination while in Yugoslavia it is known as
self-management. The involvement of workers in the decision making process has been
termed variously as industrial democracy, employee participation, participatory management
and workers’ participation in management.

Workers’ participation in management decision making is a highly complex concept. The

notion is not a new one. It has apparently existed since the beginning of the industrial

12
revolution. However, its importance increased over a period of years due to the growth of
large-scale enterprises, increase in work-force, paternalistic philosophy and practice of
informal consultation. Moreover, the growth of professionalism in industry, development of
the principle of social justice, transformation of traditional labour management relations,
advent of democracy in industry have added new dimensions to the concept of participative
management.

The philosophy of workers’ participation emphasizes democratic participation in decision-

making, maximum employer-employee collaboration, minimum state intervention, realization
of a greater measure of social justice, greater industrial efficiency and higher level of
organizational health and effectiveness.

Participation, in empowering employees to take responsibility for their own jobs, can lead to
better, more effective management and employee relations. Participative programs are largely
responsible for raising morale, creativity and employee job satisfaction as well.

In essence, participative management is recognized as a source of organizational

effectiveness. It is believed to have a great potential to bring about social changes that are
directed at better social and economic order. However, the real benefits accruing would
depend upon the extent of participation of employees in management in practice.

OBJECTIVES OF WORKERS PARTICIPATION IN MANAGEMENT

The objectives of workers participation in management may vary from country to

country, state to state, and from industry to industry depending upon the quality of
manpower, level of technology, level of competition socio-economic status,
political ,philosophy, attitude of the working class and the industrial relations scene. Though
there are so many factors governing the objectives of workers participation some
common objectives are:

1. To prevent workers from exploitation by the management or by the owners of the

organisation.

2. To have democracy in the organization.

3. To have proper development of the working class.

4. To resolve conflicts and differences between management and employees in a

democratic manner.

13
5. To create in employees a sense of participation in industry.

6. To encourage suggestions from employees.

7. To improve the working and living conditions of employees.

8. To promote better understanding between labours and management on the various

issues of the organisations.

9. To give employees a better understanding of their role in the working of the industry.

10. To give the employees an opportunity for self-expression leading to industrial peace,
good relations and increased co-operation.

1.2 STATEMENT OF THE PROBLEM

Workers participation may, broadly be taken to cover all terms of association of workers and
their representatives with the decision making process. When employees are involved in
making decisions, they gain a professional and personal stake in the organization and its
overall success. This commitment leads to increased productivity as employees are actively
participating in various aspects of the company and wish to see their efforts succeed overall.
So the study aims to evaluate the effect of workers participation in decision making in the
organization.

Worker’s participation in management is the participation of the workers in decision- making

as well as various important aspects of an organization, which has been accepted as a
fundamental concomitant of harmonious labour management relations. The need for the
researcher to study “worker’s participation in management” is to find out the workers’ need
level.

1.3 RELEVANCE & SCOPE OF THE STUDY

The scope of this study on the effect of employee participation on organizational performance
will cover the process of employees involvement in decision making process in an
organization carefully describing the benefits that is accrue to it.

There is a good scope in KLF Nirmal industries (P) Ltd for organizational study. It ultimately
contains five most essential departments including HR, Finance, Marketing,
Stores& purchase, production departments etc. The organizational structure and working

14
conditions in KLF Nirmal industries (P) Ltd really helps an aspirant researcher to
understand how relatively big organization is functioning. It is a private sector organization
which will help to observe how effectively the management is managing the company very
well with efficient utilization of the available resources. So the direct exposure will help the
researcher to have a positive impact on the overall productivity of the company.

1.4 OBJECTIVES OF THE STUDY

Primary objective

 To study the effectiveness of workers participation on organizational performance.

Secondary objective

 To examine the effect of employee participation in decision making

 To determine the challenges that are associated with employee participation.
 To know whether workers participation in decision making motive the employees.

15
 CHAPTER 2

INDUSTRY AND COMPANY PROFILE

16
INDUSTRY PROFILE

Coconut oil is saturated fat extracted from coconuts and used in cosmetics and cooking. It is
rich in laruic acid, a medium chain fatty acid. Non-hydrogenated coconut oil is 70" F or 22-
24"C. It is the most stable of all oils and has the highest smoke point of all cooking oils.

India ranks highly among the oil seed producing countries in the world with perhaps the
largest commercial variety of oil seeds. The cultivation of oil seed in India is spread over
various states. The progress of the Indian coconut sector during the last two decades can be
classified in to three distant categories. First is the progress achieved in extending the
cultivation of the crop in more areas both traditional and non-traditional. Second is the
increase in the area, production and productivity of the coconut in the country with the
regress in the conception of the coconut oil in edible and non- edible sector which warranted
the need for the development of broad based processing technologies for the sustainable
growth of the industries.

India accounts for the 22.34% of the world‟s coconut trade. Coconut is extracted from
„copra‟ which means dried coconut. It is estimated that copra constitutes 65 to 75% of the oil
content in it. Coconut oil is an important cooking medium in the southern parts of the
country. India has unbeatable quality advantage in the oil sector. The price of coconut oil is
shaped by the variations in production, global demand, and supply situation and price of other
vegetable oil. The copra crushing industry-milling industry, established centuries ago had
been one of the major industries in the state. This industry occupied an important place in the
industrial map of Kerala even before coir and cashew industries came to forefront. It is a fact
that coconut products gain price and value up-gradation as they pass through market
channels.

But the fanners are not getting the dividends of this value up-gradation to the desired extent.
As such, the coconut-based economy in the country' is mainly dependent on the single
coconut product oil. The intrinsic quality of coconut oil has helped t find applications in the
food, personal care and chemical sectors.

Refined coconut oil is also manufactured in the country' for industrial uses. Refined coconut
oil is mainly used in manufacture of biscuits, chocolate and other confectionary' items,

17
Pharmaceutical products and costly paints. Generally, filtered coconut oil is used for cooking
purposes.

The coconut palm provides a substantial export income for many tropical countries, as well
as food and drink for home consumption and fuel and shelter. Of the exported products,
copra, the dried kernel, is a major source of vegetable oil and coconut oil, and shredded and
dried kernel is widely used in the bakery and confectionery trades as desiccated coconut.
`Copra cake‟, left after oil extraction, is a valued animal feed, especially for dairy cattle.

The leading coconut producer nations are (in order) the Philippines, Indonesia, India, Sri
Lanka, Thailand and Malaysia. While production from nations such as Fiji, Papua New
Guinea, Solomon Islands, Samoa, Tonga and Vanuatu is relatively small, the coconut trade is
a major source of export revenue for these countries. In some years, copra comprises more
than 50% of Vanuatu‟s export income.

However, the industry’s ability to meet demand and expand may be jeopardized by:

• The declining share of coconut oil in the world’s oils and fats market.

• A proposed levy on vegetable oil imports to the European Community and a

campaign against coconut oil in the US.

• More stringent aflatoxin regulations imposed in the international copra market.

• Erosion of the European desiccated coconut market.

• Lack of a market development and expansion program.

• Low incomes for coconut farmers.

Coconut oil is extracted from dried or tender coconut kernels and is a tasteless and colourless
oil. The coconut oil is available in two types based on the extraction- unrefined and refined or
virgin oil. Unrefined oil is unbleached and unprocessed and is rarely used in consumption,
while virgin oil is used in consumption. The coconut oil market has seen tremendous
potential in the personal care industry, already popular in Asian regions, but now also popular
globally. The coconut oil is also used as a substitute to the vegetable oil and is traditionally
used ingredient in the natives of South India. Given, its wide array of applications, the
coconut oil market sees a huge growth in the forecast period.

18
Coconut Oil Market: Segmentation

The coconut oil market can be segmented on the basis of type, source, end-use and
distributional channel. On the basis of source, the coconut oil market can be segmented as
organic and conventional.

On the basis of type, the coconut oil market can be segmented as refined and unrefined On
the basis of end-use, the coconut oil market can be segmented as food industry, personal care
industry and commercial. The coconut oil market in food industry can be further segmented
as confectionary, sauces & spread, flavouring ingredient and others. The commercial segment
can be further segmented as hotels, restaurants & cafes (Horeca), institutional Foods and
households.

On the basis of distribution channel, the coconut oil market can be segmented as direct and
indirect sales. The indirect sales are further segmented as Modern trade, wholesalers,
convenience stores, retailers and online retailers.

Coconut Oil Market: Key Players

1. Windy City Organics

2. Premier Organics Inc.

3. The Hain Celestial Group, Inc.

4. Windmill Organics

5. Wichy Plantation Company (Pvt) Ltd

6. Andy Albao Corporation

7. The HallStar Company

8. Marico Limited

19
2.1 BUSINESS PROCESS OF THE INDUSTRY

Coconut palms can be found in the coastal areas of India. The dried kernel of coconut is
popular as copra. This is an industrial term. Copra is the major commercial product of
coconut. Copra normally has an oil content varying from 65 to 72 percent. There is another
term is ‘virgin coconut oil.’ Basically, virgin coconut oil comes from the extraction of the
fresh coconut (not from copra). If you are living in a coconut growing are, you can start
coconut oil manufacturing business. There is another type of coconut oil, named RBD
coconut oils. RBD stands for refined, bleached, deodorized. The “bleaching” is generally not
a chemical process, but rather a filter process to remove impurities. A “bleaching clay” is
used for this filtering. Here in this article, we intend to explore how to start coconut oil
manufacturing business from copra.

Coconut is a versatile and popular plantation which is grown in more than 90 countries of the
world. India is one of the preeminent producers of coconut globally, producing 13 billion nuts
per annum. Coconut is mainly cultivated in coastal areas and is found in abundance in
Andhra Pradesh, Goa, Assam, Karnataka, Kerala, Maharashtra, Orissa, Tamil Nadu, Tripura,
West Bengal, Andaman, and the Nicobar Islands, Lakshadweep, and Pondicherry. Though
establishing a coconut plantation is not easy, but once it is done, it proves to be very
beneficial as it can be harvested throughout the year. The future of the coconut oil
manufacturing business seems to be extremely promising in India.

In Indian culture, coconut holds a crucial place and has been found here for eternity. India
today holds third place in the list of significant coconut producing countries in the world. The
coconut production in India is 95 00,000 metric tonnes, and the area under the coconut
plantation is around 1.78 million hectares in the country. Kerala is the largest producer of
coconuts in India as it accounts for around 45% of the country’s total production.

The Indian markets have been recently witnessing an unprecedented upward trend in the last
14 months. The rising demand for organic virgin coconut oil from the USA and Europe has
appeared as a silver lining for India. India exported 500 tonnes of coconut last year while this
year it is expected to get double. The coconut virgin oil and raw coconuts have been high in
demand and boosted the coconut oil manufacturing business in the geographical boundaries
of India. The raw coconuts fetched revenue of Rs. 200 crores last year.

20
Multi-channel process

The Indian coconut oil industry sector has to work with a very complex distribution system
comprising multiple layers of numerous small retailers between the company and end
customer. To increase market penetration, Indian coconut oil manufacturing companies have
realized that they need to reach out to consumers present at the lower end of the economic
pyramid. Consumerism has broadened the spectrum of opportunities for the coconut oil
industry sector. Eventually, companies will have to find innovative ways of balancing market
penetration and logistics cost.

Coconut Oil Manufacturing – Market Potential

Coconut oil is an important cooking medium in Southern parts of the country, especially in
Kerala and Karnataka State. Besides, the oil has varied industrial applications. It is used in
the manufacture of toilet soaps, laundry soaps, surface active agents and detergents, hair
tonics, hair oil, massage oil, cosmetics, etc. Growing in tropical locations coconut has the
global market opportunity.

The main consumer of coconut products, particularly coconut oil and copra, remains to be the
United States. In the European Union member countries, the Netherlands serves as a main

21
port for the importation of these products, which are then distributed to other countries.
Refined coconut oil enjoys high demand in France and Germany, with its diverse applications
in the cosmetics industry. Thus, we can say, coconut oil manufacturing is a profitable
business opportunity for the new entrepreneurs.

2.2 MARKET DEMAND & SUPPLY- CONTRIBUTION TO GDP- REVENUE

GENERATION

Market Overview

The World Market Price Virgin Coconut Oil is projected to reach roughly USD 5 Billion by
2024, enlisting a considerable CAGR of 9.5% during the estimated time frame, 2019 - 2024.
The crude coconut oil got from a dried coconut through expeller-squeezing is principally
known as virgin coconut oil. The significant determinant driving the development of the
worldwide virgin coconut oil market is the flooding interest for virgin coconut oil for
multiple beneficial purposes at home or in business. The developing interest among shoppers
toward virgin coconut oil over more grounded than refined coconut oil, as it is acquired
through expeller-squeezing, is additionally catalysing the utilization of virgin coconut oil
across the globe. Rising wellbeing worries among the worldwide people are one of the more
effective factors that are boosting the demands of virgin coconut oil. Nonetheless, the
provincial accessibility of coconuts, as a crude material, is driving business sector players to
rely upon tremendous import volumes of coconut, which thus has prompted a climb in the
retail costs of virgin coconut oil. Subsequently, high virgin coconut oil at sprouts farmers
market is relied upon to hamper the market development, particularly in agricultural nations.

Industrial dynamic in the worldwide virgin organic coconut oil market basket is required to
observe development openings for a very long time because of the expanding number of
government initiatives that drive and innovative headways. Expanding reception of virgin
coconut oil in different end-use applications, for example, in the food and drinks area, by
virtue of expanding interest for virgin coconut oil in different food items, is a key factor
expected to drive the worldwide central market virgin coconut oil. What's more, developing
insight about virgin coconut oil being more grounded than different oils among everybody in
created and creating economies is further energizing the development of the worldwide

22
market. Expanding interest in virgin coconut oil in the food business is expected to give a
significant lift to the worldwide virgin coconut oil industry, as more organizations are moving
their inclinations to the food area. As far as application, the worldwide market has been
sorted into immediate and effective utilization. Among the applications, beautifying agents
and individual consideration section of utilization is required to enlist huge development in
the coming years because of rising mindfulness about advantages of utilizing coconut oil for
better skin.

Major Drivers of the Market

The significant determinant driving the development of the worldwide virgin coconut oil
market is the flooding interest for virgin coconut oil for effective purposes at residents or
businesses. The developing demand for virgin coconut oil than refined coconut oil all over is
pushing the market for its growth. It is acquired through expeller-squeezing, is additionally
catalysing the utilization of being virgin coconut oil industry

Market Growth Challenges

The expanding interest in feeding way of life and expanding admission of omega unsaturated
fat will provoke more interest and more freedoms for coconut oil producers to go into this
business. Deficient creation of coconut oil and well absence of interest from modern areas
may be prone to hamper the development of the market in the future.

Cumulative Growth Analysis

High costs of coconut oil market size are required to hamper market development,
particularly in agricultural nations. Sellers' dynamic in the worldwide virgin coconut oil
industry is relied upon to observe development openings during the impending a very long
time because of the expanding number of government drives and innovative headways.

This report has a clear focus upon highlighting the growth aspects of the global virgin
coconut oil market. Along with that, this report also intends to put up the competitive
landscape and recent developments on the table to explain the position of this global market.

23
 Report Attribute/Metric Details

Market Size USD 5 Billion (2024)

CAGR 9.5% (2019-2024)
Base Year 2019
Forecast Period 2027
Historical Data 2018
Forecast Units Value (USD Billion)
Report Coverage Revenue Forecast, Competitive Landscape,
Growth Factors, and Trends
Segments Covered Category, Packaging Type, Distribution Channel
Geographies Covered North America, Europe, Asia-Pacific, and Rest of
the World (RoW)
Key Vendors Barlean’s (US), Hain Celestial Group (US),
Nutiva Inc. (US), Carrington Farms (US), La
Tourangelle (US), Celebes Coconut Corporation
(Philippines), Greenville Agro Corporation
(Philippines), SC Global Coco Products, Inc
(Philippines), Naturoca (Indonesia), Farmerindia
(India), Viva Naturals (Canada), Garden of Life
LLC (US), Naturoca (Indonesia), PT. Harvard
Cocopro (Indonesia)and Jarrow Formulas, Inc.
(US)
Key Market Opportunities New product launches and R&D Amongst major
key Players
Key Market Drivers  Rising health consciousness.
 high nutritional benefits

 Coconut Oil Market: Segmentation

The coconut oil market can be segmented on the basis of type, source, end-use and
distributional channel. On the basis of source, the coconut oil market can be segmented as
organic and conventional.
24
On the basis of type, the coconut oil market can be segmented as refined and unrefined On
the basis of end-use, the coconut oil market can be segmented as food industry, personal care
industry and commercial. The coconut oil market in food industry can be further segmented
as confectionary, sauces & spread, flavoring ingredient and others. The commercial segment
can be further segmented as hotels, restaurants & cafes (Horeca), institutional Foods and
households.

On the basis of distribution channel, the coconut oil market can be segmented as direct and
indirect sales. The indirect sales are further segmented as Modern trade, wholesalers,
convenience stores, retailers and online retailers.

 Coconut Oil Market: Drivers, Restraints, and Trends

The coconut oil market has seen a moderate rise in the past decade as people’s preference for
coconut oil has increased due to its many health benefits. Its applications in the personal care
and cosmetics like hair care and skincare has paved the way for the growth of coconut oil
market. The coconut oil market has seen rise due to due to its ready availability and cheap
prices, especially for the consumers dwelling in the tropical regions. The macro-economic
factors like the ban on the export of coconut in countries such as Indonesia is affecting the
growth of the coconut oil market globally. While many regions remain dependent on the
exports from tropical countries for the production of coconut related products, such
moratoriums may hamper the growth of the coconut oil market. The coconut oil is the basis
of coconut snacks and its usage as a substitute for various oils has further fuelled the growth
of the coconut oil market.

CONTRIBUTION TO GDP

The annual coconut production of India is 2437.80 crore and the productivity is 11616
coconuts per hectare. ... The crop contributes Rs 34,100 crore to GDP. More than one crore
people depend on this crop for their livelihood.

Union Minister for Agriculture and Farmers Welfare, Shri Radha Mohan Singh said that the
Coconut Development Board's (CDB) major schemes are focusing on coconut production,
productivity, processing for coconut products, value addition, marketing, and export
promotion in Bihar.

25
The Minister said that India is leading in the global coconut production and productivity. He
said that the annual coconut production is 2395 crore from 20.82 lakh hectare and the
productivity is 11505 coconuts/hectare. Coconut contributes to about Rs.27900 crore to the
country's Gross Domestic Product (GDP). In the year 2016-17, coconut products worth of
Rs.2084 crore were exported. More than one crore population depends on coconut cultivation
for their livelihood. The aim of the CDB is to assist the coconut farmers in coconut
production, processing, marketing and export of value-added coconut products thereby to
make India the global leader in coconut production, productivity, processing, and export.

Shri Singh said that the country has witnessed an increase in coconut export. During the
period 2013 -15, coconut production was 42,104 million nuts whereas 44,405 million nuts
were produced during the period of 2015-17. The export value of coconut products has
increased from Rs.3017.30 crore during 2011-14 to Rs. 4846.36 crore, which is 60.62%
more, which is an achievement.

In the year 2016, we started exporting coconut oil to Malaysia, Indonesia, and Sri Lanka, the
countries from where we were importing earlier. For the first time, desiccated coconut is
being exported to the US and Europe in large quantities from India.

The Minister said that the coconut cultivation can be taken up even in homesteads in Bihar
with proper management. Currently, 14,900 hectare is under coconut cultivation. As per the
Board's estimation, a nearly 50,000-hectare area in Bihar is suitable for coconut cultivation
under irrigated condition. Consider this, the farmers who train at the Farmers Training Centre
can consider coconut cultivation. In addition, an increase in coconut production will lead to
employment generation. More people will get employment through the production of various
coconut based products like coconut chips, coconut milk, coconut sugar, coconut water,
tender coconut water, coconut honey, coconut jaggery, coconut milkshake, coconut snacks,
virgin coconut oil, coconut natural cream, more nee cookies and other products.

Shri Singh informed that CDB had sanctioned Rs.409.01 lakh for the implementation of
coconut related schemes in Bihar for the year 2014 to 2017. To increase the area under
coconut cultivation in Bihar, the focus is on 'Expansion of area under coconut' scheme and
financial assistance is being provided under the scheme for the new plantations. For the
demonstration of the scientific coconut cultivation, Rs. 46.25 lakh has been allocated for the
scheme 'Laying out of Demonstration Plot' for the period of 2017-18.

26
The government has increased the Minimum Support Price of Milling Copra from Rs 6500
per Quintal to Rs 7511 per Quintal and for Ball copra from Rs 6785 per Quintal to Rs 7757
per Quintal. Not only this, the government has declared up to 5% incentive in the export
value (FOB) in its new Foreign Trade Policy for 2015-20 for the promotion of coconut
product export. A quantum leap in the export of coconut products is expected in the near
future as the price of coconut products is increasingly becoming highly competitive.Income
earned from export of coconut products was Rs 3975 crore during 2004-14, which increased
to Rs 6448 crore during 2014-18. With the efforts of Modi Government, India has started
exporting coconut oil to Malaysia, Indonesia and Sri Lanka. Till last year, India used to
import coconut oil from these countries. Besides, for the first time, India is exporting large
quantities of dry coconut to US and European countries.

The Minister said that he is confident that the farmers will avail the benefits of the schemes
implemented by the Board and will take forward the coconut cultivation and industry for their
better Health, Wealth and Wellness. The Coconut Development Board with its whole hearted
efforts will leave no stone unturned to fulfil the dreams of the farmers and beneficiaries. India
will become the global leader in not only the production and productivity of coconut but also
in processing and export, and the innumerable qualities of coconut will emerge.

REVENUE GENERATION

The global coconut oil market revenue amounted to $5.9B in 2018, going down by -3.7%
against the previous year. This figure reflects the total revenues of producers and importers
(excluding logistics costs, retail marketing costs, and retailers' margins, which will be
included in the final consumer price). Overall, coconut oil consumption continues to indicate
a relatively flat trend pattern. The pace of growth appeared the most rapid in 2014 when the
market value increased by 18% year-to-year. Global coconut oil consumption peaked at
$6.1B in 2017, and then declined slightly in the following year.

Consumption by Country

The countries with the highest volumes of coconut oil consumption in 2018 were the U.S.
(507K tonnes), Indonesia (443K tonnes) and India (385K tonnes), with a combined 38%
share of global consumption. The Philippines, Germany, the Netherlands, Viet Nam, China,
Malaysia, Mexico and South Korea lagged somewhat behind, together accounting for a
further 36%.

27
From 2011 to 2018, the most notable rate of growth in terms of coconut oil consumption,
amongst the main consuming countries, was attained by Malaysia, while the other global
leaders experienced more modest paces of growth.In value terms, India ($1B), the U.S.
($638M) and Indonesia ($545M) constituted the countries with the highest levels of market
value in 2018, together accounting for 37% of the global market. These countries were
followed by Mexico, the Philippines, Germany, the Netherlands, Viet Nam, Malaysia, China
and South Korea, which together accounted for a further 33%.

In 2018, the highest levels of coconut oil per capita consumption was registered in the
Netherlands (10,511 kg per 1000 persons), followed by Malaysia (4,269 kg per 1000
persons), the Philippines (2,639 kg per 1000 persons) and Germany (2,237 kg per 1000
persons), while the world average per capita consumption of coconut oil was estimated at 457
kg per 1000 persons. From 2011 to 2018, the average annual rate of growth in terms of the
coconut oil per capita consumption in the Netherlands totaled +2.6%. In the other countries,
the average annual rates were as follows: Malaysia (+8.6% per year) and the Philippines (-
6.2% per year).

Market Forecast 2019-2025

The coconut oil market is expected to start a downward consumption trend over the next
seven years. The performance of the market is forecast to decrease slightly, with an
anticipated CAGR of -1.3% for the seven-year period from 2018 to 2025, which is projected
to depress the market volume to 3.2M tonnes by the end of 2025.

Production by Country

The countries with the highest volumes of coconut oil production in 2018 were the
Philippines (1.2M tonnes), Indonesia (885K tonnes) and India (390K tonnes), with a
combined 76% share of global production. Viet Nam, Mexico, Malaysia and Cote d'Ivoire
lagged somewhat behind, together accounting for a further 12%.

From 2011 to 2018, the most notable rate of growth in terms of coconut oil production,
amongst the main producing countries, was attained by Cote d'Ivoire, while the other global
leaders experienced more modest paces of growth.

28
2.3 LEVEL AND TYPE OF COMPETITION –FIRMS OPERATING IN THE
INDUSTRY

The competitive landscape in the coconut oil market report features key players operating in
the industry. The key players of coconut oil market have been featured based on their revenue
shares, key differential strategies, and several other factors. The report features key players
operating in the coconut oil market such as Adani Wilmar, Ruchi Soya Industries, Associated
British Foods, Cargill Inc., Archer Daniels Midland Company, Bunge Limited, Adams Group
Inc., and American Vegetable Oil Inc.Cargill Inc., a prominent player in the coconut oil
market, had acquired Dalmia olive oil business to forge ahead with new product launches.
Moreover, Cargill Inc. invested approximately $17.5 million in Izegem edible vegetable oil
refinery to upgrade its production capacity. Key players in the coconut oil market are
introducing new varieties such as turmeric-infused coconut oil to tap into prime
opportunities. In addition to that, innovative products such as NatureWax Coconut 1 and
NatureWax Coconut 2 made with coconut oil are also diversifying dynamics of the coconut
oil market.

Trade competitiveness is a dynamic concept that is influenced by the relative changes in

international and domestic prices. The prices are impacted by the demand and supply
situation of commodities, including technology & costs of production, and other
market conditions. Trade competitiveness can be estimated by comparing the farmers sale
price of a commodity with its export parity reference price (derived by subtracting the
margins and charges incurred by exporters such as freight, port handling, etc from the
fob price of that commodity) and import parity reference price (derived by adding
margins and charges incurred by importers such as freight, port handling expenses and
related costs, etc. in the cif price of the commodity). If the domestic price of any
commodity is lower than the export (import) parity reference price, then the commodity is
export (import) competitive. Measuring India’s competitiveness in copra and coconut oil
becomes difficult due to lack of reliable data.

Best cost five main competitive strategies are:

• Overall low cost leadership strategy

• Provider’s strategy

29
• Broad differentiation strategy

• Focused low cost strategy

• Focused differentiation strategy

FIRMS OPERATING IN THE INDUSTRY ARE:

 Kerafed
 Thejas Coconut oil
 KPL Oil Mills
 Nutiva coconut oil
 Green ville Agro Corporation
 Robust coconut oil
 Raw Coco Delight
 Pavithram coconut oil
 Swami Oil Mills
 Parachute

2.4 PRICING STRATEGIES IN THE INDUSTRY

A pricing strategy is a model or method used to establish the best price for a product or
service. It helps you choose prices to maximize profits and shareholder value while
considering consumer and market demand. Pricing strategy take into account many of your
business factors, like revenue goals, marketing objectives, target audience, brand positioning,
and product attributes.

They’re also influenced by external factors like consumer

demand, competitor pricing, and overall market and economic trending. The best pricing
strategy maximize your profit and revenue.

The price of coconut and its products, which witnessed a record upward trend in August,
2014 had softened in November 2014. However, after a brief pause, it continued to sustain
the upward trend in all the major markets in the country. The price rise was due to drought in
major coconut-growing districts in Karnataka for the past two consecutive years and also due

30
to the inability of farmers to store their produce for conversion to ball copra. A significantly
high demand for ball copra in the upcountry market has boosted prices to record level. Prices
may sustain further in coming months even the new arrivals are expected to come from May-
June.

Also, the market is facing shortage of milling copra as its stocks with the Nafed got fully
depleted and also the estimates of coconut production in the major growing states for 2014-15
did not show any significant increase in comparison with the previous year. Meanwhile, the
export of dry coconut is witnessing steady increase despite rising domestic prices, whereas
virgin coconut oil export is on the rise since December 2014.

Being a market leader KPL Nirmal follows the price which is currently going on in the
market which is then followed by their competitors. Being a coconut oil product they play
with variations in quantity like offering extra 20-30 ml at the same price. This pricing
strategy in its marketing mix helps KLF Nirmal to increase the sales revenue because
customers are attracted toward discounts and offers. As the brand is renowned for their new
variants like the advanced oil they have value pricing which is a bit higher when compared to
their competitors but offers a premium quality alongside. Like every other brand, they have
differential pricing for every different variant. This differential pricing strategy helps KLF
Nirmal to build and position very well in the market.

 Competitive pricing
Competitive pricing is the process of selecting strategic price points to best take
advantage of a product or service based market relative to competition. ... Competitive
pricing is generally used once a price for a product or service has reached a level of
equilibrium.

 Promotional pricing
Promotional pricing is a sales strategy in which brands temporarily reduce the price of
a product or service to attract prospects and customers. By lowering the price for a
short time, a brand artificially increases the value of a product or
Service by creating a sense of scarcity.

 Penetration Pricing.

31
 The price charged for products and services is set artificially low in order to gain
market share. Once this is achieved, the price is increased. This approach was used by
France Telecom.

 Surge pricing

Dynamic pricing also referred to as surge pricing, demand pricing , or tie-based

pricing is a pricing strategy in which businesses set flexible prices for products or
services based on current market demands. Surge pricing occurs when the supply
constraints and lower production have pushed up coconut oil and copra prices to a
new high in recent months.

 Discount pricing
Coconut oil industry use discount pricing to sell low-priced products in high volumes.
With this strategy, it is important to decrease costs and stay competitive. Large
retailers are able to demand price discounts from suppliers and make a discount
pricing strategy effective as they buy in bulk.

2.5 PROSPECTS AND CHALLENGES OF THE INDUSTRY

On a global scale, currently coconut oil industry is in the state of production and
consumption booming. The global Virgin Coconut Oil market is valued at 650 million
USUSD in 2018 and will reach 780 million USUSD by the end of 2025, growing at a CAGR
of 2.3% during 2021-2025.

 For years and years, the main output of the coconut sector on the international market
was copra, crude coconut oil (CNO) and its derivatives. However, since
approximately 10 years, we see new products so called “non-traditional” products
entering global exchanges. The market growth of these products, mainly coconut
water extracted from mature or immature nuts, virgin coconut oil (VCO) cold pressed
from the fresh kernel, coconut sugar taken from the sap flowing out of the flower, is
exponential. They benefit from the healthy, simple and natural image that is conveyed
by the coconut tree in the subconscious minds of the consumers.

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 The craze for this new products create also biggest expectative from the consumers
towards the coconut stakeholders. This is why this article will also suggest some
tracks of reflection for the research and expert’s communities, who would like to
support this expansion, thus contributing to the future of the millions of small coconut
farmer.
 The coconut oil market can be segmented into applications, packaging, product type,
and distribution channel. Coconut oil market finds applications in food, household
detergents, metalworking fluids, paints and coatings, soaps, textile chemicals, plastic
industry and pharmaceuticals and cosmetic industry.
 On the basis of packaging, the coconut oil market is divided into steel drums, flexi
tanks/ISO tanks, carboys, plastic bottles, squeeze tubes, glass jars, and pails. On the
basis product type, the coconut oil market is segmented as distilled, partially
hydrogenated, fully hydrogenated, low white or low whole products. On the basis
distribution channels, the coconut oil market is segmented as manufacturers, super
stockist, wholesalers, retailers, online retailers and convenience stores.
 The coconut oil market has seen tremendous potential in the personal care industry,
already popular in Asian regions, but now also popular globally.
 The coconut oil is also used as a substitute to the vegetable oil and is traditionally
used ingredient in the natives of South India. Given, its wide array of applications, the
coconut oil market sees a huge growth in the forecast period.
 The coconut oil market has seen a moderate rise in the past decade as people’s
preference for coconut oil has increased due to its many health benefits. Its
applications in the personal care and cosmetics like hair care and skincare has paved
the way for the growth of coconut oil market.
 The coconut oil market has seen rise due to due to its ready availability and cheap
prices, especially for the consumers dwelling in the tropical regions.
 The macro-economic factors like the ban on the export of coconut in countries such
as Indonesia is affecting the growth of the coconut oil market globally.
 While many regions remain dependent on the exports from tropical countries for the
production of coconut related products, such moratoriums may hamper the growth of
the coconut oil market. The coconut oil is the basis of coconut snacks and its usage as
a substitute for various oils has further fuelled the growth of the coconut oil market.

33
  Coconut oil has witnessed considerable demand in the last decade on account of its
unmatched versatility. However, supply inconsistencies and sluggish rate of
production have raised up coconut oil prices to a new high.

 The rising demand for coconut-based variants such as coconut sugar and coconut
water have skyrocketed in the past few years, exhausting raw materials used for oil
manufacture. The inability of manufacturers to streamline the supply framework as
per demand generated for coconut oil has led to this surge in prices. It is likely that
this increase in prices might lead to debut of adulterated coconut oil in the market,
which might pose threats for the product integrity quo of coconut oil market. Coconut
Oil is used in household cooking in states like Kerala and Goa. It is also used in the
bakery, hair oil and soap manufacturing industry.

CHALLENGES OF THE INDUSTRY

Coconut oil is an edible fatty oil that is widely used in cooking and recipes. It is also used in
industrial applications such as seasoning cast iron skillet, cosmetics, and soaps. The oil also
provides a wide range of health benefits including moisturizing skin, food digestion, mental
performance, hormonal support, immune support, and burning fat. It is categorized into
subcategories that include crude coconut oil, refined coconut oil, and virgin coconut oil. The
consumption of coconut oil is driven by different factors in different regions. For instance, in
the APAC region coconut oil is widely used for cooking purpose because of its cost.
However, in North America, the demand is driven by branded coconut-based products such
as soaps and hair care products. Similarly, in Europe, consumer’s demands are on the rise due
to the increasing use of healthy organic food and the shift toward a healthy diet.

The Strategies being proposed with respect to rehabilitation, conservation and development
of the Regional Coconut Industry are designed to address the range of issues impacting on the
Industry thereby contributing to its decline. These include:

 The alienation of land under Coconut and conversion to other uses

 The range of pest and disease that are fatal to the industry
 The limited range of commercial products/vale added from Coconut and the need to
improve on the quality of refined Coconut oil

34
  The failure to invest in rehabilitation works, mainly the replacement of the old
diseased trees.
 The need for a comprehensive breeding programme with a view to the development
of varieties that would optimization production of the main end products such as
Coconut water and Coconut Oil.
 Challenges Procuring Non-Adulterated Coconut Oil.
 Evaluating Suppliers' Sustainability of Sourcing.
 Fragmented Supply Base.
 Evaluating Suppliers' Adherence to Regulations.
 The unorganized supply chain, Vulnerability of coconut to world price fluctuations,
low farm productivity, the aging of current crop of coconut trees and poor nutrition,
inadequate infrastructure support.

2.6 KEY DRIVERS OF THE INDUSTRY

The dependency of the consumers on oil based cuisines and their willingness to opt for a
better health related substitutes has boosted the growth of the coconut oil market in North
America. So, the coconut oil market sees high growth due to its entrant as a new breakfast
spread in the North America. Macro-economic factors like approval of coconut oil as a low
fat product is hindering the growth of the market in Europe. The coconut oil market in Asia
Pacific sees maximum growth as consumers are well aware of the benefits of coconut and the
use coconut products traditionally has boosted the growth of this market. The consumers in
Asia Pacific are expected to prefer the use of coconut oil more readily due to awareness about
its health benefits and this is a major driver for the growth of coconut oil market in Asia
Pacific. In the regions for Middle East and Africa, the African countries are highly dependent
on agriculture and their related products for the growth of their economy, and hence coconut
oil market is also expected to grow in this region. The coconut oil market is expected to grow
in tropical regions w Key players in the coconut oil market are introducing new varieties such
as turmeric-infused coconut oil to tap into prime opportunities. In addition to that, innovative
products such as NatureWax Coconut 1 and NatureWax Coconut 2 made with coconut oil are
also diversifying dynamics of the coconut oil market.here there is more production of
coconuts.

35
Coconut oil market is driven by increasing application in as an ingredient in cosmetic
industry. Increasing health benefits are also driving the coconut oil market over the forecast
period. The coconut oil is not only used as a cosmetic and an enhancement in beauty care but
also has nutritional and health benefits. For women opting for shampoos, hair oils,
conditioners, sunscreen, and serum- coconut oil has a solution for all these problems as
proven by dermatologists.

Increasing health benefits are also driving the coconut oil market over the forecast period. It
is emerging as a better option for cardiovascular patients because, due to its unsaturated fatty
acid content, it lowers heart attack risk for these patients. Besides, coconut oil production is
low in regions such as Europe and USA whereas the demand increases, and due to less
available resources, the price for this product also goes on increasing and hence, coconut oil
makes is desirable for investors.

Some of the key manufacturers in the coconut oil market are:

 Parachute,
 A.B. Enterprises,
 PT MANGGA DUA,
 Flower Song Fine Chemical Co Ltd.,
 EPS IMPEX CO.,
 J.K.International,
 Irmal Middle East,
 PT General Laju,
 ADP Southeast Orient Corporation,
 Shanghai Asia Co.Ltd. And Libra Bioscience Pvt. Ltd.

 The countries with the highest volumes of coconut oil consumption in 2018 were the
U.S. (507K tonnes), Indonesia (443K tonnes) and India (385K tonnes), with a
combined 38% share of global consumption. The Philippines, Germany, the
Netherlands, Viet Nam, China, Malaysia, Mexico and South Korea lagged somewhat
behind, together accounting for a further 36%.

36
 From 2011 to 2018, the most notable rate of growth in terms of coconut oil
consumption, amongst the main consuming countries, was attained by Malaysia,
while the other global leaders experienced more modest paces of growth.
 In value terms, India ($1B), the U.S. ($638M) and Indonesia ($545M) constituted the
countries with the highest levels of market value in 2018, together accounting for 37%
of the global market. These countries were followed by Mexico, the Philippines,
Germany, the Netherlands, Viet Nam, Malaysia, China and South Korea, which
together accounted for a further 33%.
 In 2018, the highest levels of coconut oil per capita consumption was registered in the
Netherlands (10,511 kg per 1000 persons), followed by Malaysia (4,269 kg per 1000
persons), the Philippines (2,639 kg per 1000 persons) and Germany (2,237 kg per
1000 persons), while the world average per capita consumption of coconut oil was
estimated at 457 kg per 1000 persons.
 The Coconut oil market and it is poised to grow by $ 517.98 million between 2020
and 2024, with a CAGR of 7% during the forecast period.
 The analysis of the virgin coconut oil market includes the product segment and
geographic landscapes. This identifies the growing demand for trans-fat free oils as
one of the major reasons for the growth of the virgin coconut oil market in the coming
years.

Key growth drivers are:

 Evolving lifestyle of consumer

 Commitment to sustainability
 Entry of foreign players have been key to sustainable growth.
 Government policy support
 Availability of raw materials.
 Changing lifestyle.
 Export growth
 Affordable workforce affordability.

37
2.7 COMPANY PROFILE

With a history of more than 75 years in the industry, KLF is among the top selling brands of
coconut oil in the country. Adhering to the highest quality parameters from copra
procurement through processing t packaging, KLF is synonymous with what‟s pure,
wholesome and healthy in coconut oil. With a state-of-the-art extraction and packaging plant
located at Irinjalakuda in Thrissur district of Kerala, KLF produces high grade coconut oil
and sesame oil.

Founded by visionary businessman, the Late Mr. K.L. Francis, the KLF brand name today is
the assurance of quality and purity to millions of consumers not only in its home state of
Kerala, but also in the Indian and International markets. KLF. Nirmal Industries Private
Limited is a Non-govt company, incorporated on 27 Jun, 2008. It's a private unlisted
company and is classified as ‘company limited by shares'. Company's authorized capital
stands at Rs 1200.0 lakhs and has 40.002007% paid-up capital which is Rs 480.02 lakhs.

MISSION: -

Our Mission is to produce Coconut oils of the highest quality by adhering to international
standards and industry best practices, and by inculcating a work culture focused on
innovation and positive change.

OUR VISION: -

Our Vision is to be the No: 1 producer of premium quality coconut oil in the country, to be
the one brand that consumers across the world identify and recognize to be the best in its
category.

QUALITY AND RESEARCH

It is the quality of KLF products that has made the brand a household name in coconut oils.
KLF‟s commitment to quality covers every aspect of production form procuring of copra
through processing to packaging. KLF procures the finest coconut directly from framers,
which is then sun-dried in hygienic copra hying yards to retain its natural richness, flavour
and nutritional value. It has purchasing centres across Kerala ensure steady supply of high

38
yielding copra. KLF‟s unique patented YSIC processing technology to minimize moisture
content, reducing the chances of oil becoming stale, increasing its shelf life and cutting down
warm up time.

At KLF we believe in continuous improvement, and include a substantial amount in our

annual budgeting to research and development programs and to evolve new technologies to
enhance the quality of our products.

PROCESS OF PURITY

Well dried copra having minimum moisture content is thoroughly cleaned of all extraneous
matter and to cut into small chips in a copra cutter. The chips are fed into team jacketed
kettles and cooked mildly using KLF‟s patented Yaccumi/.ed Steam Injected Cooking
(VSIC) Technology. The cooked material is fed into expellers. and the oil that is extracted
passes through a four-stage filtration process to ensure that the end product is crystal clear.

PACKED TO PERFECTION

KLF products are available in convenient consumer packs of various capacities. Hi- tech
packing machines ensure leak-proof, tamper-proof packaging that helps retain aroma and
flavour of the products and increase their shelf life. Installed in a specially designed hygienic
environment, these machines ensure „zero contamination' for the entire package.

VSIC TECHNOLOGY

VSIC Technology is a unique method of processing coconut oil that result in lower moisture
content, less chances of the oil becoming stale and increased product shelf life. Reduced
moisture content allows the oil to heat up faster while it also minimizing the absorption of oil
in the food that is being prepared. This makes for a healthier table spread, besides -
contributing to energy saving, VSIC Technology also ensures uniform cooking of food items,
which in turn enhances payability.

OBJECTIVES OF THE COMPANY

Objectives may he defined as the goals which one tries to achieve. As far as business is
concerned its main goal is to earn reasonable profit. For achieving these objectives the
company tries to attain greater efficiency, satisfaction of customer, better work force, better
working condition etc.

The main objective of the company is that:-

39
• To achieve maximum profit with minimum cost.

• Provide customer with quality products that help them to live healthy life.

• Increase the market shares.

• To enhance the annual turnover of the company.

COMPETITORS

KLF is known for the quality of the products. Normally, it would seem a simple task for
company to identify its competitors. The competitors of KLF are:-

• Parachute

• KPL

• Kerafed

The main competitor of KLF is KPL. KPL was incorporated in the year 1941. The company
was established by Kite Shri. K. P. Lonappan. KPL was situated in the environment of
Irinjalakuda in Thrissur district.

PRODUCT PROFILE

The company produces variety of products. The main product produced by the company is
KLF coconut oil. The products produced by the company are as follows:-

• KLF Pure Nirmal coconut oil

• KLF Nirmal virgin coconut oil

• KLF Coconad

• KLF Tilnad

• KLF Cocodaily

• KLF Cocosoft

40
The KLF Tilnad range of gingerly oil and sunflower oil was recently introduced in the Kerala
Market. KLF will soon foray into manufacture of processed food products and read) ‟ to eat
foods. Manufacture of Ayurvedic Medicines s also in the pipeline.

DEPARTMENTAL PROFILE

The departmentalization helps in specialization of work in each field .It helps in

better planning and better concentration in the particular work handled by a particular
department. The various departments in KLF Nirmal industries (P) Ltd are as follows:

1. Human Resources Department

2. Production Department

3. Stores and Purchase Department

4. Finance Department

5. Marketing Department

41
 CHAPTER 3

REVIEW OF LITERATURE

3.1 BRIEF THEORETICAL CONSTRUCT RELATED TO THE PROBLEM

42
The research is incomplete without relevant review of literature. Before starting a research, it
is necessary for a researcher to have a fair idea about what has been done earlier on the
similar or same topic of research. It gives an in-depth understanding of the topic about to be
researched. Review of literature will provide the researcher with the theoretical base of the
study.

(Mitchell, 1973)Employee involvement in decision making, sometimes referred to as

participative decision-making (PDM) is concerned with shared decision making in the work
situation.

Locke and Schweiger (1979) define it as „joint decision making‟ between managers and
subordinates.

According to Noah (2008), it is a special form of delegation in which the subordinate gain
greater control, greater freedom of choice with respect to bridging the communication gap
between the management and the workers. It refers to the degree of employee's involvement
in a firm‟s strategic planning activities. A firm can have a high or low degree of employee
involvement. A high degree of involvement (deep employee involvement in decision making)
means that all categories of employees are involved in the planning process.

Conversely, a low degree of involvement (shallow employee involvement in decision

making) indicates a fairly exclusive planning process (Barringer & Bleudorn, 1999) which
involves the top management only. A deep employee involvement in decision making allows
the influence of the frontline employees in the planning process.

According to Sagie and Aycan (2003), the combination of the two-by-two power distance
(low/medium versus high) and individualism (low/medium versus high) give rise to four
approaches to PDM: face-to face, collective, pseudo, and paternalistic participation.

Employee Participation in Decision-making: General Research Studies The worker

representation and participation survey conducted by Freeman and Rogers in US during the
fall of 1994 gathered extensive data on the preferences of private sector workers (Rogers and
Freeman, 1994: 784-5; Dunlop Commission, December 1994, pp. 63-65), (both cited in
Delaney, 1996).

According to Delaney (1996) the evidence suggested that there is a strong demand by
employees for participation at work. Similar findings were obtained in the research carried
out in the UK involving organisations with over 1,000 employees (Guest, 1999) quoted in

43
decision making on the basis of their merits as it has been proved by researchers to have
improved organizational performance. Workers participation may, broadly be taken to cover
all terms of association of workers and their representatives with the decision-making
process, ranging from exchange of information, consultations, decisions and negotiations to
more institutionalized forms such as the presence of workers‟ members on management or
supervisory boards or even management by workers themselves as practised in Yugoslavia.
When employees are involved in making decisions, they gain a professional and personal
stake in the organization and its overall success. This commitment leads to increased
productivity as employees are actively participating in various aspects of the company and
wish to see their efforts succeed overall. This is not only beneficial to company growth, but is
also on-the-job training for workers. The increase in responsibility expands employee skill
sets, preparing them for additional responsibility in the future.

Workers‟ participation in management is an essential ingredient of Industrial democracy. The

concept of workers' participation in management is based on Human Relations approach to
Management which brought about a new set of values to labour and management.
Traditionally the concept of Workers' Participation in Management (WPM) refers to
participation of non-managerial employees in the decision-making process of the
organization. Workers‟ participation is also known as labour participation‟ or 'employee
participation‟ in management.

According to Keith Davis, Worker’s participation refers to the mental and emotional
involvement of a person in a group situation which encourages him to contribute to group
goals and share in responsibility of achieving them”.

According to Walpole, Participation in Management gives the worker a sense of importance,

pride and accomplishment; it gives him the freedom of opportunity for self- expression; a
feeling of belongingness with the place of work and a sense of workmanship and creativity.

3.2 AN OVERVIEW OF EARLIER STUDIES

44
 A review on the previous studies on stress among the employees is necessary to know the
areas already covered. This will help to find our new areas uncovered and to study them in
depth. The earlier studies made on workers participation in management are briefly reviewed
here.

The research study of Rachana Kalsan (2017) the participation of workers is high in the
organisation, it effects the performance and productivity of the organisation. With the
participation of workers are satisfied with their job. They feel an important part of the
organisation due to their satisfaction of performance of workers may be improved. And if the
workers performance improved it can ultimately improve the firm’s performance.

According to Mehtras. The concept of participation as principle of democratic administration

in an industry implies a share by rank and file in the decision making process of an industrial
organization through their representatives at all the appropriate levels of management in the
entire range of managerial action.

The research study of Shinde and Pandit Deobarao (2016) workers participation leads to
commitment to work and convergence of individual and organisation goals, abiding values of
pursuit of excellence. Employee’s self-development in terms of skills and career.

Prathima SD (2017), in the study on “workers participation in management “it finds that the
participative management should provide equal importance to both interest related issues
unlike as in the present traditional industrial relations culture where workers, management
and unions are active in protecting the interests and passively participating in work related
issues.

Barik and Ratnakar(2012) in their study Employee engagement is the buzz word term for
employee communication. It is a positive attitude held by the employees towards the
organization and its values. It is rapidly gaining popularity, use and importance in the
workplace and impacts organizations in many ways.

Mr S Jamal (2015)in the study “Workers participation in management “conducted at Central

coalfields limited ,Employee engagement emphasizes the importance of employee
communication on the success of a business. An organization should thus recognize
employees, more than any other variables, as powerful contributors to a company’s
competitive position. Employee engagement should be a continuous process of learning,
improvement, measurement and action.

45
According to the study conducted about workers participation in management by Surendra
Nath Singh (2020), from the study it can be identify that workers participation in
management develops the economy because to achieve greater degree of support between
management and employees through better information sharing and joint decision making. To
increase the job satisfaction of workers by bringing about a sense of belongingness and
commitment to the organizations goal.

Nadeem Malik, (2011) the growing importance of workers participation in management

ultimately improving the productive efficiency of the organisation through reduction in
wasteful practices, better planning and control.

3.3 UNIQUENESS OF RESEARCH STUDY

It is a result that this study is concerned with effectiveness of workers participation in

management. The management interprets it as the joint consultation prior to decision making;
workers take it as equivalent to co-decisions and experts practically regard it as association of
labour without the final authority or responsibility in decision-making.

However, without considering these various shades of the term, it is used here as a process of
delegating authority and responsibility in the general arena of managerial functions. It is also
considered as a forum for the communication and consultation (formal and informal) by
which the employees are kept informed about the affairs of the concern and through which
they (workers) put their opinion, suggestions etc. to contribute to management decisions.

46
 CHAPTER 4

METHODOLOGY OF THE STUDY

47
RESEARCH METHODOLOGY

Research is defined as “a scientific and systematic search for pertinent information on

specific topic”. Research is an art of scientific investigation. Research is a systemized effort
to gain new knowledge. It is a careful inquiry especially through search for new facts in any
branch of knowledge. The search for knowledge through objective and systematic method of
finding solutions through a problem is research.

Research methodology offers to the method of gathering data through intensive interviewing
and other methods. Knowledge from expert persons was also sought from the organization.
The data collected were analysed with the parameters of evolution model to prepare the final
report. Research in common parlance refers to a search for knowledge. One can also define
research as a scientific and systematic search for pertinent information on a specific topic. In
fact, Research is an art of scientific investigation. The Advanced Learner’s Dictionary of
Current English lays down the meaning of research as “a careful investigation or inquiry
especially through search for new facts in any branch of knowledge.”

Research methodology is a way to systematically solve the research problem. It may be

understood as a science of studying how research is done scientifically. “Research
methodology is a method of studying problems whose solutions are to be desired partly or
wholly from facts. These facts may be statements of opinions, historical facts, those
contained in records and reports, the results of tests, answers to questionnaire, experimental
data of any sort, and so forth” (W.S Monroe).

Research methodology is the path through which researchers need to conduct their research.
It shows the path through which these researchers formulate their problem and objective and
present their result from the data obtained during the study period. This research design and
methodology chapter also shows how the research outcome at the end will be obtained in line
with meeting the objective of the study. This chapter hence discusses the research methods
that were used during the research process. It includes the research methodology of the study
from the research strategy to the result dissemination.

In this study primary data has been used as the source for conducting the research. Primary
data is data that is collected by a researcher from first-hand sources, using methods like
surveys, interviews, or experiments. It is collected with the research project in mind, directly
from primary sources. An advantage of using primary data is that researchers are collecting
information for the specific purposes of their study. In essence, the questions the researchers

48
ask are tailored to elicit the data that will help them with their study. Among the secondary
data, existing literature and data are also reviewed to conduct the study. Secondary data is the
data that has already been collected through primary sources and made readily available for
researchers to use for their own research. The research methodology using here is descriptive
research. The researcher collects the primary data and secondary data from various sources.
Sample sizes are decided and questionnaires are used for conducting research. The clarity in
research problem and sample size helped to make the research study perfect.

4.1 RESEARCH APPROACH AND DESIGN

RESEARCH APPROACH

Research approach comprises of plans and the procedure for the research that spans the steps
from broad assumptions to detailed methods of data collection, analysis and interpretation.
The overall decision involves which approach should be used to study a topic. Informing this
decision should be philosophical assumptions the researcher brings to the study; procedures
of inquiry (called Research Design); and specific research methods of data collection,
analysis and interpretation.

The two main types of research are qualitative research and quantitative research. Qualitative
research is descriptive in nature, because it generally deals with non-numerical and
unquantifiable things. Quantitative research is much more numbers-driven. The emphasis is
on the collection of numerical data. The conclusion then makes inferences based on that data.
In this study both qualitative and quantitative research approach is used as research is based
on both primary and secondary data.

RESEARCH DESIGN

Research design is defined as a framework of methods and techniques chosen by a researcher

to combine various components of research in a reasonably logical manner so that the
research problem is efficiently handled. It provides insights about “how” to conduct research
using a particular methodology. Every researcher has a list of research questions which need
to be assessed this can be done with research design. Among various research designs the
research design selected for the study is exploratory research design.

49
In this study descriptive research design is used. Descriptive research is defined as a research
method that describes the characteristics of the population or phenomenon that is being
studied. In other words, descriptive research primarily focuses on describing the nature of a
demographic segment. There are three main types of descriptive methods: observational
methods, case-study methods and survey methods.

4.2 SOURCES OF ONLINE DATA

After establishing the objective and determining the design of the research study, it is
necessary to collect accurate data. The online sources of data are such sources from which the
researcher will be able to collect information using internet.

 Primary sources - The primary data is collected by approaching the individuals with a
questionnaire and was filled after making them understand the use of the information.
This was done to make sure that the information provided is true and unbiased.
Primary data refers to the first-hand information that an investigator himself collects
from the respondents. It’s direct and original in nature. It refers to the data collected
afresh for the first time. For this study the data is collected from the customers with
the help of questionnaire with customers.
 Secondary sources - In this study secondary data is collected and among the
secondary data, literature reviews are collected for the purpose of the study. Through
the review of literature the researcher will be able to make a comparison between the
existing studies and the new study and it will lead to a theoretical conclusion of the
study. The various sources of online data used in this study are e-books, e-journals, e-
magazines, online thesis and articles and various websites.

4.3 SAMPLING DESIGN

A sample design is the framework, or road map, that serves as the basis for the selection of a
survey sample and affects many other important aspects of a survey as well. In a broad
context, survey researchers are interested in obtaining some type of information through a
survey for some population, or universe, of interest. One must define a sampling frame that
represents the population of interest, from which a sample is to be drawn. The sampling
frame may be identical to the population, or it may be only part of it and is therefore subject

50
to some under coverage, or it may have an indirect relationship to the population (e. g. the
population is preschool children and the frame is a listing of preschools). The sample design
is selected mainly for the studies or researches where primary data is being used. With the
help of sampling design survey can be conducted through questionnaires and research will be
done based on the available data from the respondents.

SAMPLE SIZE

The sample size of this study is 100. These 100 samples are collected from the workers of the
company.

SAMPLING METHODS

There are two types of sampling methods:

• Probability sampling involves random selection, allowing you to make statistical

inferences about the whole group.

• Non-probability sampling involves non-random selection based on convenience or

other criteria, allowing you to easily collect initial data.

The sampling method used for the project is non-probability convenience sampling.
Convenience sampling is a non-probability sampling technique where samples are selected
from the population only because they are conveniently available to the researcher.

4.4 DATA ANALYSIS TOOLS

Data analysis tools help researchers make sense of the data collected. It enables them to
report results and make interpretations. How the data is analysed depends on the goals of the
project and the type of data collected. Some studies focus on qualitative data, others on
quantitative data, and many on both (mixed-methods studies)

The tools which are used for this study are questionnaires which include direct questions,
close end questions, multiple choice questions, and dichotomous questions. Percentage
analysis method is used and presentation tools like tables, graph, diagrams and software tools
are used. Garrett’s ranking technique was used to rank the preference indicated by the
respondents on different factors.

51
QUESTIONNAIRE

A questionnaire is a research instrument consisting of a series of questions for the purpose of

gathering information from respondents. Questionnaires can be an effective means of
measuring the behaviour, attitudes, preferences, opinions and, intentions of relatively large
numbers of subjects more cheaply and quickly than other methods. An important distinction
is between open-ended and closed questions. Often a questionnaire uses both open and closed
questions to collect data. This is beneficial as it means both quantitative and qualitative data
can be obtained

1. Direct questions: Direct questions are just what their names indicate. They explicitly
ask for the desired data. However the directness of the question also relates to the way a
response is interpreted.

2. Close end questions: Such questions are also called fixed alternative questions they
refer to those questions in which the respondent is given a limited number of alternative
response frame which he/she is to select one that most closely matches his/her opinion or
attitude.

3. Dichotomous questions: A dichotomous question refers to one which offers the

respondent a choice between only two alternatives and reduces the issue to its simple terms.
The fixed alternatives are of the type, yes/no, agree/disagree, true/false etc.

4. Multiple choice questions: A multiple choice question refers to one which provides
several set alternatives for its answers. Thus, it is a middle ground between free answers and
dichotomous question.

PERCENTAGE ANALYSIS

Percentage analysis is used for the analysis of primary data collection. Percentage is special
kind of ratios that express the relationship of one variable in comparison to another
percentage analysis formula.

Percentage = (No. of respondents/Total respondents)*100

52
PRESENTATION TOOLS USED FOR DATA PRESENTATION

1. Table: A table is a systematic arrangement of statistical data in rows and columns. Rows
are horizontal arrangements, whereas columns are vertical arrangements.

2. Graph & Diagram: One of the most of convincing an appealing way in which data may be
presented is through charts. A chart can be taking the shape of either diagram or graph.

3. Software Tools used for Project presentation: The software tools used for the study are
MS-Word, MS-Excel.

HENRY GARRETT’S RANKING TECHNIQUE

To find out the most significant factor which influences the respondent, Garrett’s ranking
technique was used. As per this method, respondents have been asked to assign the rank for
all factors and the outcomes of such ranking have been converted into score value with the
help of the following formula:

Percent position = 100 (Rij – 0.5) / Nj

Where, Rij = Rank given for the ith variable by jth respondents and Nj = Number of variable
ranked by jth respondents.

With the help of Garrett’s Table, the percent position estimated is converted into scores. Then
for each factor, the scores of each individual are added and then total value of scores and
mean values of score is calculated. The factors having highest mean value is considered to be
the most important factor.

4.5 REPORT STRUCTURE

A report is a specific form of writing that is organized around concisely identifying and
examining issues, events, or findings that have happened in a physical sense, such as events
that have occurred within an organization, or findings from a research investigation.

These events can also pertain to events or issues identified within a body of literature. A
report informs the reader simply and objectively about all relevant issues. There are three
features that characterize report writing at a very basic level: a pre-defined structure,
independent sections, and reaching unbiased conclusions.

A key feature of reports is that they are formally structured in sections. The use of sections
makes it easy for the reader to jump straight to the information they need. Unlike an essay

53
which is written in a single narrative style from start to finish, each section of a report has its
own purpose and will need to be written in an appropriate style to suit – for example, the
methods and results sections are mainly descriptive, whereas the discussion section needs to
be analytical. Understanding the function of each section will help to structure your
information and use the correct writing style.

The entire report is divided into seven chapters.

• CHAPTER 1- INTRODUCTION

This chapter is divided into four namely, background of the study, statement of the problem,
relevance and scope of the study and objectives of the study.

• CHAPTER 2 - INDUSTRY PROFILE

This chapter describes the industry as a whole. It includes business process of the industry,
value chain analysis of the industry, market demand and supply-contribution to GDP-
revenue generation, level and type of competition-firms operating in the industry, pricing
strategies in the industry, prospects and challenges of the industry, key drivers of the
industry.

• CHAPTER 3 - REVIEW OF LITERATURE

The chapter includes theoretical construct related to the problem, overview of earlier studies
and uniqueness of the study.

• CHAPTER 4 - METHODOLODY OF THE STUDY

This chapter explains how the study is conducted by illustrating the details like research
approach and design, sampling design, data analysis tools, online sources etc.

54
• CHAPTER 5 - DATA ANALYSIS AND INTERPRETATION

The data’s collected are statistically illustrated in this chapter. The analysis of the data and
the interpretations and inferences derived from the analysis are also quoted. It includes the
observations by the candidate and logical conclusions related to the problem.

• CHAPTER 6 - FINDINGS OF THE STUDY

This chapter illustrates what are the findings the researcher was able to derive from the study.

• CHAPTER 7 – CONCLUSION

4.6 LIMITATIONS OF THE STUDY

Limitations of the study are the following:

 The data was collected through questionnaire. The responds from the respondents
may not be accurate.
 The sample taken for the study was only 50 and the results drawn may not be
accurate.
 Since the organization has strict control, it acts as another barrier for getting data.
 Another difficulty was very limited time-span of the project.
 Lack of experience of Researcher.

55
 CHAPTER 5

DATA ANALYSIS, INTERPRETATION AND INFERENCE

56
 1. How long have you been working in this organisation?

TABLE 5.1

Response No.of Respondents Percentage

Below 2 years 8 8%
2-5 years 12 12%
5-10 years 65 65%
Above 10 years 15 15%
Total 100 100%

FIGURE 5.1

Below 2 Years 2-5 Years 5-10 Years Above 10 Years

8%
15%

12%

65%

INTERPRETATION

Figure 5.1 shows that 8% have below 2 years of working experience, 12% have 2-5 years of
experience, 65% have 5-10 years of experience and 15% have above 10 years of experience.
So, it is concluded that most of the workers have 5-10 years of experience.

2. Do you feel that there is workers participation in management in this organization?

TABLE 5.2

57
 Response No.of Respondents Percentage
Yes 70 70%
No 30 30%
Total 100 100%

FIGURE 5.2

Yes No

30%

70%

INTERPRETATION

Figure 5.2 shows that70% of the respondents have the opinion that they have participation in
management of the organization. 30% responded as there is no workers participation in
management. So it is concluded that majority valued as there is workers participation in
management.

3. By which means workers participation in management is adopted in this organization?

TABLE 5.3

58
 Response No.of Respondents Percentage
Works committee 50 50 %
Joint council 26 26 %
Shop Management 4 4%
Quality circle 20 20 %
Total 100 100 %

FIGURE 5.3

60

50

40

30

20

10

0
Works committee Joint council Shop Management Quality circle

INTERPRETATION

Figure 5.3 shows 50% of the respondents said that the means through which workers
participation in management adopted is through works committee, 26% said it as joint
council, 4% as shop management, 20% said it as quality circle. So it is concluded that most of
the respondents said that the means through which workers participation in management
adopted is through works committee.

4. How often the management conduct meeting with the employees?

59
 TABLE 5.4

Response No.of Respondents Percentage

Monthly 24 24 %
Quarterly 56 56 %
Half yearly 6 6%
Yearly 14 14 %
Total 100 100 %

FIGURE 5.4

INTERPRETATION

Figure 5.4 shows 24% responded that the company conduct meeting in monthly basis, 56%
said that company meetings are conducted quarterly, 6% said it half yearly and 14% said that
meeting conducted yearly basis. So it is concluded that most of the respondents said that the
management conduct meeting with the employees in quarterly basis.

5. Do you agree that there exist conflict between employees and management?

60
 TABLE 5.5

Response No.of Respondent Percentage

Strongly Agree 6 6%
Agree 14 14 %
Disagree 66 66 %
Strongly Disagree 14 14 %
Total 100 100 %

FIGURE 5.5

70

60

50

40

30

20

10

0
Strongly Agree Agree Disagree Strongly Disagree

INTERPRETATION

Figure 5.5 shows 6% of the respondents strongly agree that there exist conflicts between
employees and management. 14% agree that occurrences of conflict exists between
employees and management. 66% disagree about the statement and14% strongly disagreed.
So it is concluded that majority disagreed that there exist of conflict between employees and
management.

6. What are the reasons for the occurrence of the conflict?

TABLE 5.6

61
 Response No.of Respondents Percentage
Disagreement 18 18 %
Poor motivation 22 22 %
Lack of consideration 50 50 %
Excessive number of 10 10 %
employees
Total 100 100 %

FIGURE 5.6

10% 18%

Disagreement
Poor motivtion
Lack of consideration
Excessive number of employees
22%
50%

INTERPRETATION

Figure 5.6 shows that 18% respondents said that disagreement is the main reason for conflict,
22% said it is poor motivation, 50% said it is lack of consideration and 10% said that the
main reason is excessive number of employees. So it is concluded that most of all the
employees evaluated that lack of consideration is the main reason for the occurrence of the
conflict.

7. How often you get opportunity to give suggestion to the management?

TABLE 5.7

62
 Response No.of Respondents Percentage
Always 64 64 %
Occasionally 20 20 %
Rarely 10 10 %
Neutral 6 6%
Total 100 100 %

FIGURE 5.7

70

60

50

40

30

20

10

0
Always Occasionally Rarely Neutral

INTERPRETATION

Figure 5.7 shows 64% respondents opined that they always get the opportunity to give
suggestion. 20% said it occasionally. 10% said it rarely and only 6% said it as neutral. So it is
concluded that majority of all respondents opined they always get a chance to give
suggestion.

8. What is the attitude of management when you give the suggestion?

TABLE 5.8

63
 Response No.of Respondents Percentage
Positive 56 56 %
Negative 26 26 %
Neutral 12 12 %
No comment 6 6%
Total 100 100 %

FIGURE 5.8

Positive Negative Neutral No comment

6%

12%

56%

26%

INTERPRETATION

Figure 5.8 shows 56% respondents said that the attitude of the management is positive when
giving suggestion, 26% said it negative attitude, 12% as neutral and 6% have no comment. So
it is concluded that most of the respondents said that there is positive attitude of management
when employees are giving suggestions.

9. What kind of monetary benefit you are getting through workers participation in
management?

TABLE 5.9

64
 Response No.of Respondents Percentage
Wages and salary 68 68 %
Bonus 6 6%
Incentives 20 20 %
Others 6 6%
Total 100 100 %

FIGURE 5.9

68

20

6 6
Wages and salary Bonus Incenives Others

INTERPRETATION

Figure 5.9 shows that 68% of employees get wages and salary as monetary benefit, 6% get
bonus ,20% get incentives and 6% get others type. So it is concluded that majority employees
get wages and wages and salary as monetary benefit.

10. To what extend employees are involved in the decision making process?

TABLE 5.10

Response No.of Respondents Percentages

65
 To a great extend 10 10 %
To a small extend 76 76 %
Not at all 14 14 %
Total 100 100 %

FIGURE 5.10

14% 10%

To a great extend
To a small extend
Not at all

76%

INTERPRETATION

Figure 5.10 shows that 10% of employees responded that they get involvement in decision
making to a great extent, 76% said it as to a small extend and only 14% said that not at all
they get involvement in decision making. So it is concluded that majority of workers get
involvement in decision making to a small extend.

11. Do you agree that workers participation in management reduce employee resistance to
change?

TABLE 5.11

66
 Response No.of Respondents Percentage
Agree 26 26 %
Partially Agree 60 60 %
Partially Disagree 10 10 %
Disagree 4 4%
Total 100 100 %

FIGURE 5.11

70

60
60

50

40

30 26

20

10 10
4

0
Agree Partially Agree Partially Disagree Total

INTERPRETATION

Figure 5.11 shows that 26% of employees agree that the workers participation in management
reduces employee resistance to change, 60% partially agree with it, 10% partially disagree
and 4% disagree with the statement. So it is concluded that majority of employees partially
agree that workers participation in management reduces employee resistance to change.

12. Do you agree the workers participation in management enhance overall productivity?

TABLE 5.12

67
 Response No.of Respondents Percentage
Yes 74 74 %
No 26 26 %
Total 100 100 %

FIGURE 5.12

INTERPRETATION

Figure 5.12 shows that 74% of the respondents opined that workers participation in
management enhances the productivity in the organization and 26% responded that workers
participation in management didn’t enhances the productivity. So it is concluded that
majority of the respondents reacted as the workers participation in management enhances the
productivity.

13. What is your opinion regarding the rules and regulations of this organization?

TABLE 5.13

68
 Responses No.of Respondents Percentage
Strict 26 26 %
Liberal 14 14 %
Ordinary 60 60 %
Total 100 100 %

FIGURE 5.13

70

60

50

40

30

20

10

0
Strict Liberal Ordinary

INTERPRETATION

Figure 5.13 shows that 26% of the employees opined that the rules and regulations of the
company is strict, 14% responded it is liberal and 60% said it is ordinary in nature. So it is
concluded that majority of employees evaluated as the rules and regulations provided by the
company is ordinary in nature.

14. What is your impact of workers participation in management on your morale?

TABLE 5.14

69
 Response No.of Respondents Percentage
Positive 74 74 %
Negative 26 26 %
Total 100 100 %

FIGURE 5.14

80
74

70

60

50

40
26
30

20

10

0
Positive Negative

INTERPRETATION

Figure 5.14 shows that 74% said that workers participation in management has positive
impact on morale and 26% said it has negative impact on the morale. So it is concluded that
majority of the employees revealed that impact of workers participation in management have
positive impact on morale.

15. Do you think that workers participation in management in the company must be
improved?

70
 TABLE 5.15

Response No.of Respondents Percentage

Yes 88 88 %
No 12 12 %
Total 100 100 %

FIGURE 5.15

Yes No

12%

88%

INTERPRETATION

Figure 5.15 shows that 88% employees reacted that workers participation in management is
to improved. Only 12% responded that there is no need of improvement in the organisation.
So it is concluded that majority responded that the workers participation in management must
be improved.

16. What is the level of relations are you have with your superior?

TABLE 5.16

71
 Response No.of Respondents Percentage
Good 72 72 %
Average 14 14 %
Poor 14 14 %
Total 100 100 %

FIGURE 5.16

80

70

60

50

40

30

20

10

0
Good Average Poor

INTERPRETATION

Figure 5.16 shows 72% have good relation with superior, 14% said that they have average
relation and 14% said that they have poor relation with superior. So it is concluded that
majority evaluated that level of relation with superior in the organization is good.

17. Rate the workers participation in management in the organization?

TABLE 5.17

72
 Response No.of Respondents Percentage
Excellent 10 10 %
Good 60 60 %
Average 16 16 %
Poor 14 14 %
Total 100 100 %

FIGURE 5.17

14% 10%

16% Excellent
Good
Average
Poor

60%

INTERPRETATION

Figure 5.17 shows that 70% of the respondents said that workers participation in management
is excellent, 60% said it as good, 16%as average and 14% said that it is poor. So it is
concluded that majority of the respondents have the opinion that the workers participation in
management is good.

18. What is your opinion about employee participation within the organization?

TABLE 5.18

Response No.of Respondents Percentage

Highly participated 70 70 %

73
 Limited participation 18 18 %
No participation 12 12 %
Total 100 100 %

FIGURE 5.18

80

70

60

50

40

30

20

10

0
Highly participated Limited participation No participation

INTERPRETATION

Figure 5.18 shows that 70% employee’s opinion that they get highly participation in the
management, 18% opined limited participation and 12% opined no participation in the
management. So it is concluded that from this majority of the employees opined that they get
highly participation in the management.

19. How do you feel working within the organization?

TABLE 5.19

Response No.of Respondents Percentage

Excellent 54 54 %

74
 Good 26 26 %
Poor 12 12 %
Very poor 8 8%
Total 100 100 %

FIGURE 5.19

Excellent Good Poor Very poor

8%

12%

54%

26%

INTERPRETATION

Figure 5.19 shows that 54% of the respondents opined that working environment in the
organization is excellent, 26% said that it is good, 12% employees said that it is poor and 8%
opined that it is very poor. So it is concluded that most of the employees responded that
working environment in the organization is excellent.

20. Workers participation in management is able to develop high result?

TABLE 5.20

Response No.of Respondents Percentage

Strongly agree 72 72 %

75
 Agree 14 14 %
Disagree 8 8%
Strongly disagree 6 6%
Total 100 100 %

FIGURE 5.20

72

14
8
6
Strongly agree Agree Disagree Strongly Disagree

INTERPRETATION

Figure 5.20 shows 72% of the employees strongly agree that workers participation in
management makes high result, 14% were agree with the statement, 8% disagreed and only
6% strongly disagree with this. So it is concluded that majority of the employees strongly
agree with the statement that workers participation in management makes high result in the
organization.

76
 CHAPTER 6

FINDINGS AND SUGGESTIONS

77
 FINDINGS

1) Most of the workers are works in period of 5-10 years.

2) Majority of the employees valued as there is workers participation in
management.
3) Most of the respondents have the same opinion that means through adopted is
works committee.
4) Most of all responded as the time period taken to conduct meeting is quarterly.
5) Majority responded as the chance occurrence of conflict between employees
and management is less.
6) Most of all the employees evaluated that lack of consideration is the main
reason for the occurrence of conflict.
7) Most of all the respondents opined that they always get a chance to give
suggestion.
8) Most of the respondents said that there positive attitude of management in
giving suggestions.
9) Majority employees get wages and salary as monetary benefit in the
organization.
10)Majority workers get involvement in decision making to a small extend.
11)Majority of employees partially agree that workers participation in
management reduces employee resistance to change.
12)Majority of the respondents reacted as the workers participation in
management enhances the productivity.
13)Majority employees evaluated as the rules and regulation provided by the
company is ordinary in nature.
14)Majority of the employees revealed that impact of workers participation in
management have positive impact on morale.
15)Majority responded that the workers participation in management must to be
improved.
16)Majority evaluated that level of relation with superior in the organization is
good.

78
17)Majority of the respondents have the opinion that the workers participation in
management is good.
18)Majority of the employees are highly participated in the management.
19)Most of the employees responded that environment in the organization is
good.
20)Majority of the employees strongly agree with the statement that workers
participation in management makes high results in the organization.

79
 SUGGESTIONS

 The company should find out and implement innovative methods to improve workers
participation in management.
 Provide more opportunity to the workers for making suggestions.
 To keep good relation between the management and employees.
 Give necessary consideration to the employees and their ideas.
 Improve communication involving workers in maintaining decision making.
 Promote co-operation and team spirit among employees.
 Organisation should be more concern about the safety of employees.
 The suggestion box should be made more effective.
 Organization make a provision to reduce the workload on the employees.

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CHAPTER 7

CONCLUSION

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 CONCLUSION

The study on the ‘Effectiveness of workers participation in management’ adopted by KLF

NIRMAL INDUSTRIES PVT.LTD industries reveal workers participation in management
with many good aspects. Workers participation in management implies mental and emotional
involvement of workers in the organization or enterprise. Workers participation in
management is very important because it ensure full involvement of workers and it also helps
to increase the moral, motivation, productivity, commitment and reduce disputes.

There are various forms in which the workers participate within the
organization. The various forms of workers participation in India are, work’s committee, joint
management council, joint production committee, joint councils, unit councils, plant councils,
shop councils, workers representation on board management, workers participation in share
capital and participation of workers in making changes in the working environmental
conditions. The philosophy of Workers participation in management provides a sound basis
for the economic and psychological involvement of workers in decision making process. It is
a part of human resource development strategy of an enterprise. The part time participation
largely depends upon socio cultural impact of the society, Cultural and ethics values of the
organization. This institution mechanism of participative management is to be improved to
the interest of both the organization and employees. I hope this report be an eye opener to the
management of this company. This study reveals that the workers are fully satisfied with the
implementation of Workers participation in management in this firm so that we can find out
workers participation is an important aspect of the success of an organization.

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 BIBLIOGRAPHY

REFERENCES

 Agarwala VK : Workers participation in management( Indian Labour Journal, 1981)

 Biswajeet Pattanayak: Human Resource Management
 Gary Desseler HRM, 7th edition , prentice half publication,1998
 C.R. Kothary: Research Methodology, New Age International Publishers 2nd edition.
 Agarwal K.P: “ Workers participation in management”

WEBSITES

 http://www.wikipedia.com
 http://www.klfnirmal.com
 http://www.scribd.com
 http://www.creativehrm.com

83
 ANNEXURE

Dear Sir/ Madam

I am ARDRA TB, taking the honour to inform you that I am a student of MBA 4th Semester
in DC School of management and Technology, Vagamon. I have been doing a project
“EFFECTIVENESS OF WORKERS PARTICIPATION IN MANAGEMENT” I would
like to request you to kindly spare a few minutes for answering some questions. Your answer
will be kept strictly confidential and will be used for academic purpose only. Your help will
go long way in assisting me to complete my project.

Thank you

ARDRA T.B

Name:

Age:

Gender:

1) How long have you been working in this organization?

a) Below 2 Year

b) 2-5 Year

c) 5-10 Year

d) Above 10 Year

2) Do you feel that there is workers participation in management in the organization?

a) Yes

b) No

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3) By which means workers participation in management is adopted in the organization?

a) Works Committee

b) Joint Council

c) Shop Management

d) Quality Circle

4) How often the management conduct meeting with the employees?

a) Monthly

b) Quarterly

c) Half Yearly

d) Yearly

5) Do you agree that there exist a conflict between employees and management?

a) Strongly Agree

b) Agree

c) Disagree

d) Strongly Disagree

6) What are the reasons for the occurrence of the conflict?

a) Disagreement

b) Poor Motivation

c) Lack of consideration

d) Excessive number of employees

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7) How often you get opportunity to give suggestion to the management?

a) Always

b) Occasionally

c) Rarely

d) Neutral

8) What is the attitude of management when you give suggestion?

a) Positive

b) Negative

c) Neutral

d) No comment

9) What kind of monitory benefit you’re getting through workers participation in

management?

a) Wages and Salary

b) Bonus

c) Incentives

d) Others

10) To what extend employees are involved in the decision making process.

a) To a great extent

b) To a small extent

c) Not at all

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11) Do you agree that workers participation in management reduce employee resistance
change?

a) Agree

b) Partially Agree

c) Partially Disagree

d) Disagree

12) Do you agree that workers participation in management enhance overall

productivity?

a) Yes

b) No

13) What is your opinion regarding the rules and regulation of this organization?

a) Strict

b) Liberal

c) Ordinary

14) What is your impact of workers participation in management on your morale?

a) Positive

b) Negative

15) Do you think that workers participation in management in the company must be
improved?

a) Yes

b) No

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16) What is the level of relations are you have with your superior

a) Good

b) Average

c) Poor

17) Rate the workers participation in management in the organization?

a) Excellent

b) Good

c) Average

d) Poor

18) What is your opinion about employee participation within the organization?

a) Highly participated

b) Limited participation

c) No participation

19) How do you feel working within the organization?

a) Excellent

b) Good

c) Poor

d) Very poor

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20) Workers participation in management is able to develop high result?

a) Strongly agree

b) Agree

c) Disagree

d) Strongly disagree

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